This article aims to analyse the internal and external factors that influence the development of the Muslim fashion industry in the context of the ḥalāl industry in Indonesia and formulate appropriate strengthening strategies based on the results of the Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis. This research uses a mixed approach, or a combination of qualitative and quantitative methods (mixed method), in the form of an exploratory sequential design, using the SWOT analysis technique. The research results indicate that the Muslim fashion industry in Indonesia has several strengths, which include a large domestic market, increased awareness of Sharia-compliant fashion, as well as ethnic diversity and traditions. It also shows Islam as a religion that promotes respect for cultural diversity, as Allah created humans in various forms, languages, and cultures (al-Ḥujurāt [49]: 13). Several weaknesses were identified, including a lack of access to necessary resources and technology. In terms of opportunities, they can be obtained through the increasing global demand for ḥalāl products, the opportunity to innovate in Sharia-compliant fashion design, and the demand for eco-friendly products. These are in line with Allah’s command to His caliphs to preserve the environment, among which are found in al-A‘rāf [7]: 85 and al-Qaṣaṣ [28]: 77. However, threats such as global competition and regulatory changes can hamper industry growth. Therefore, strengthening strategies are urgently needed in several main areas, to strengthen the domestic Muslim fashion market, encourage the market for Muslim fashion products, collaborate with other ḥalāl sectors, and control the export market.